First Solar (FSLR) Shares are Soaring Today. Here's Why

May 13, 2022 9:31 AM EDT
Get Alerts FSLR Hot Sheet
Price: $65.77 -1.05%

Rating Summary:
    12 Buy, 25 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
Trade Now! 
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Shares of First Solar (NASDAQ: FSLR) are trading 5% higher today after Piper Sandler analyst Kashy Harrison upgraded the stock from Neutral to Overweight with a $90.00 per share price target (up from $80.00).

The analyst sees that the recent bookings momentum, driven by AD/CVD investigation, provides strong volume/pricing visibility through 2024.

“We view '22 as a trough margin year and see the potential for improving COGS as logistics normalize, new contracting structures de-risking margins manifest in '23/'24, and startup expenses associated with facility construction subside,” Harrison said in a client note.

The analyst forecasts that revenues and EBITDA could go from $2.4/$0.1B in '22 to $4.3/$1.2B by '24.

“Our upgrade is not a call on a tariff outcome as FSLR could have pricing/volume visibility through much of '25 by the time a preliminary tariff is announced in August. Finally, FSLR possesses option value if an energy bill is passed (lower probability... excluded from valuation). At 4.5x '24 EV/EBITDA with $1.1B of net cash expected at YE'22, we like FSLR's lower risk multi-year earnings growth outlook,” Harrison added.

FSLR shares are down over 30% YTD.

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change, Hot List, Hot Upgrades, Momentum Movers, Upgrades

Related Entities

Earnings, Senad Karaahmetovic